- Apartment Price Growth Rate: New Buildings Twice as High as Older Ones
- Increased Competition for New Apartment Sales in Supply-Scarce Areas
The real estate market is witnessing a strong preference for newly built apartments, so much so that a new term ‘Eoljuksin (literally, “freeze to death but still new construction”)’ has emerged. In particular, in November, apartment supply is expected to continue in areas suffering from a supply drought where there have been no new apartment supplies in recent years, drawing significant attention.
The ‘Eoljuksin’ trend is clearly reflected in the price increase rates of apartments. According to data from the Korea Real Estate Board on the 21st, the price increase rate for newly built apartments in Seoul that are less than 5 years old was 1.14% in September, the highest among all categories. Compared to the 0.77% increase rate for apartments over 20 years old during the same period, this is nearly double.
Newly supplied apartments in areas with scarce supply also showed strong sales performance. This is because previous demand from those wanting to move into new apartments and waiting demand aiming to purchase homes through jeonse (long-term lease) prices overlapped.
In fact, ‘The H Bangbae’ in Bangbae-dong, Seocho-gu, which was offered for sale in August, attracted about 60,000 applicants for the first priority subscription following special supply. Although the price ceiling system was applied to the complex, the lack of large-scale newly built apartments recently supplied in the surrounding area and the absence of a residence obligation were considered key factors for its success. ‘The H Bangbae’ is the first newly built apartment supplied in Bangbae-dong in 5 years.
‘Yeongtong Xi Central Park’ in Yeongtong-dong, Yeongtong-gu, Suwon City, supplied in February, recorded a competition rate of 12 to 1 in the first priority subscription. This was an unusual competition rate despite the overall sluggish sales market, and the fact that it was the first newly built apartment supplied in Yeongtong-dong in 9 years was cited as a factor for its popularity. Additionally, ‘Dunsan Xi I-Park’ in Tanbang-dong, Seo-gu, Daejeon, which was offered in August last year, attracted 48,415 applicants for 705 units (excluding special supply), recording an average competition rate of 69 to 1. This was the first new apartment supplied in Tanbang-dong in 5 years since ‘ePyeonhansesang Dunsan’ in 2018.
In November, new apartment sales are expected to continue in regions with insufficient supply.
Gyeryong Construction will supply ‘Dunsan Eliph The Central’ in November on the site of KT Daejeon Talent Development Center in Seo-gu, Daejeon. This is the first new apartment supply in over 15 years and is attracting attention as a representative Dunsan living area in Daejeon.
The complex consists of 10 buildings, ranging from 3 basement floors to 29 above-ground floors, with a total of 864 units and exclusive areas of 84 to 145 m². It offers convenient access to Tanbang Station on Daejeon Subway Line 1 and quick transportation to and from Daejeon city via Daedeok-daero and Galma-ro. Located in the Dunsan living area, residents can enjoy infrastructure such as Galleria Department Store, Lotte Department Store, E-Mart, Traders, CGV, City Hall, Seo-gu Office, and Daejeon Government Complex. The comprehensive academy district in Dunsan-dong, known as the Daechi-dong of Daejeon, is nearby, providing a high-quality educational environment.
Additionally, DL E&C plans to supply ‘ePyeonhansesang Dangsan River Park’ in Dangsan-dong, Yeongdeungpo-gu; Daebang Construction will supply ‘Gunpo Daeyami Daebang Dietre’ in Dundae-dong, Gunpo-si, Gyeonggi-do; and HDC Hyundai Development Company will supply ‘Seoul One I-Park’ in Wolgye-dong, Nowon-gu, all scheduled for November.
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